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Universal Display
(NASDAQ:OLED)
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Rating:73Outperform
Price Target:
$96.00
▲(21.11% Upside)
Action:Upgraded
Date:08/05/26
The score is primarily driven by strong financial quality (high margins, minimal leverage, and solid cash generation) and a reasonable valuation with dividend support. These positives are moderated by weaker technical conditions (negative MACD and trading below longer-term moving averages) and a more cautious near-term business outlook from the latest earnings call (revenue tracking toward the low end of guidance and material sales weakness), despite resilient margin guidance and strong cash/returns to shareholders.
Positive Factors
High profitability and durable margins
Universal Display's persistently high gross and net margins provide structural resilience versus volume swings. Elevated margins (Q2 76%, FY guide 74–76%) reflect valuable materials/IP mix and give the company durable cash generation capacity to fund R&D, shareholder returns, and withstand cyclical downturns.
Negative Factors
Near-term revenue and materials weakness
Significant YoY declines in revenue and especially materials sales point to durable near-term headwinds if end-market volumes remain soft. Because materials revenue is tied to panel production, prolonged volume weakness can compress top-line and reduce scale benefits for materials margins and license catch-ups over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and durable margins
Universal Display's persistently high gross and net margins provide structural resilience versus volume swings. Elevated margins (Q2 76%, FY guide 74–76%) reflect valuable materials/IP mix and give the company durable cash generation capacity to fund R&D, shareholder returns, and withstand cyclical downturns.
Read all positive factors
Universal Display Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue from different business segments, providing insight into which areas are driving growth and how the company is diversifying its income streams.
Highlights revenue from different business segments, providing insight into which areas are driving growth and how the company is diversifying its income streams.
Data provided by:
The Fly
The FlyUniversal Display (OLED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.16B
Dividend Yield2.02%
Average Volume (3M)710.40K
Price to Earnings (P/E)21.8
Beta (1Y)1.44
Revenue Growth-8.32%
EPS Growth-19.36%
CountryUS
Employees469
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)4.15
Shares Outstanding45,966,835
10 Day Avg. Volume595,420
30 Day Avg. Volume710,399
Financial Highlights & Ratios
PEG Ratio2.49
Price to Book (P/B)3.15
Price to Sales (P/S)8.53
P/FCF Ratio38.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$106.67Price Target Upside34.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)4.22
Revenue Forecast (FY)$643.83M
Universal Display Business Overview & Revenue Model
Company Description
Universal Display Corporation is dedicated to the investigation, advancement, and market deployment of organic light-emitting diode (OLED) innovations and their constituent materials, primarily for use in display and solid-state illumination appli...
How the Company Makes Money
Universal Display makes money mainly through (1) the sale of OLED materials and (2) licensing and royalties from its intellectual property. Materials revenue comes from supplying proprietary OLED chemical materials—most notably phosphorescent emit...
Universal Display Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The call reflects a balanced outlook: meaningful near-term headwinds and notable year-over-year declines in revenue and earnings were contrasted with durable profitability (high gross margins), a strong cash position, continued industry investment and capacity ramps, and ongoing R&D progress (notably on phosphorescent blue and advanced OLED architectures). Management lowered its revenue outlook toward the low end of the prior range due to volume softness but expects seasonally stronger second-half results and highlights long-term growth drivers tied to new fabs, applications (IT, automotive, TV, foldables), and technology advances.Positive Updates
Strong Cash Position and Capital Returns
Ended Q2 with approximately $855 million in cash, cash equivalents and investments; repurchased ~531,000 shares for ~$48 million in the quarter; returned more than $238 million to shareholders over the last 12 months; board declared a Q3 cash dividend of $0.50 per share.
Negative Updates
Year-over-Year Revenue Decline
Q2 2026 revenue was $152 million, down from $172 million in Q2 2025 (−11.6% YoY). Company updated full-year revenue outlook to the lower end of the prior $630M–$670M range, citing softer near-term demand.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Cash Position and Capital Returns
Ended Q2 with approximately $855 million in cash, cash equivalents and investments; repurchased ~531,000 shares for ~$48 million in the quarter; returned more than $238 million to shareholders over the last 12 months; board declared a Q3 cash dividend of $0.50 per share.
Read all positive updates
Company Guidance
UDC updated 2026 guidance so full‑year revenue is now expected to track toward the lower end of its prior $630–$670 million range, with second‑half revenue still expected to exceed the first half (management attributes the cut to lower volumes while ASPs remain stable). Profitability targets include total gross margin guidance of 74–76% (Q2 GAAP gross margin 76%), an expected rebound in materials gross margins toward historical ~60%, a full‑year materials:royalty ratio of ~1.2:1 (Q2: ~0.8:1; H1: ~1.1:1), and operating expenses forecast to rise a low single‑digit percent versus 2025. Key Q2 metrics: revenue $152M (vs $172M YoY), material sales $66M (green $51M; red $15M), royalty & license $81M, operating income $54M (35% margin), net income $49M ($1.06 diluted), effective tax rate ~19%, cash + investments ~$855M, Q2 share repurchase ~531k shares for ~$48M, and a declared Q3 cash dividend of $0.50 per share.Universal Display Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 606.91M | 650.61M | 647.68M | 576.43M | 616.62M | 553.52M |
| Gross Profit | 457.21M | 496.49M | 499.22M | 441.05M | 488.72M | 438.53M |
| EBITDA | 257.54M | 295.17M | 316.27M | 288.57M | 310.50M | 270.21M |
| Net Income | 195.68M | 242.07M | 222.08M | 203.01M | 210.06M | 184.21M |
Balance Sheet | ||||||
| Total Assets | 1.89B | 1.96B | 1.83B | 1.67B | 1.53B | 1.47B |
| Cash, Cash Equivalents and Short-Term Investments | 471.31M | 602.36M | 492.67M | 514.12M | 577.77M | 663.19M |
| Total Debt | 16.86M | 19.22M | 19.14M | 22.86M | 29.04M | 27.26M |
| Total Liabilities | 203.77M | 202.74M | 215.81M | 221.74M | 257.45M | 367.00M |
| Stockholders Equity | 1.68B | 1.76B | 1.62B | 1.45B | 1.28B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 170.02M | 144.36M | 211.10M | 28.42M | 79.61M | 147.55M |
| Operating Cash Flow | 262.19M | 210.83M | 253.74M | 154.78M | 126.81M | 191.10M |
| Investing Cash Flow | 5.96M | -45.48M | -164.41M | -83.29M | -280.74M | -457.75M |
| Financing Cash Flow | -243.39M | -125.98M | -82.33M | -72.93M | -64.64M | -51.37M |
Universal Display Technical Analysis
Positive
79.27
Price Trends
84.92
Positive
89.19
Positive
103.53
Negative
Market Momentum
1.20
Negative
65.95
Neutral
95.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLED, the sentiment is Positive. The current price of 79.27 is below the 20-day moving average (MA) of 82.38, below the 50-day MA of 84.92, and below the 200-day MA of 103.53, indicating a neutral trend. The MACD of 1.20 indicates Negative momentum. The RSI at 65.95 is Neutral, neither overbought nor oversold. The STOCH value of 95.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OLED.
Universal Display Risk Analysis
Universal Display disclosed 30 risk factors in its most recent earnings report. Universal Display reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Universal Display Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $32.00B | 32.82 | 9.13% | ― | 7.70% | 13.95% | |
73 Outperform | $4.16B | 21.82 | 11.35% | 2.40% | -8.32% | -19.36% | |
69 Neutral | $6.20B | 105.48 | 4.90% | ― | 7.61% | -7.28% | |
68 Neutral | $135.89B | 72.04 | 15.93% | 0.76% | 19.41% | 131.24% | |
64 Neutral | $19.77B | 45.01 | 12.24% | 0.28% | 16.23% | 65.58% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $63.61B | 143.48 | 5.26% | ― | 18.00% | ― |
* Technology Sector Average
OLED
Universal Display
94.04
-43.96
-31.85%
GLW
Corning
159.19
94.15
144.76%
NOVT
Novanta
167.71
46.52
38.39%
COHR
Coherent Corp
328.57
212.01
181.89%
MKSI
MKS
294.38
191.48
186.09%
TDY
Teledyne Technologies
681.74
129.44
23.44%
Universal Display Corporate Events
Executive/Board ChangesShareholder Meetings
Universal Display Shareholders Approve Directors and Executive Pay
Positive
Jun 22, 2026
Universal Display held its 2026 annual meeting on June 18, 2026, with 42,581,241 votes represented in person or by proxy, sufficient for quorum with broker non-votes and abstentions counted as present. Shareholders re-elected all nominated directo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.